Budget 2024 Highlights: Key Takeaways and Essential Points

About Budget 2024

Budget day is an eagerly anticipated event in India, with both businesses and the general public waiting with baited breath to understand the schemes and initiatives that could potentially benefit them. An interim budget has been implemented this year in lieu of budget 2024 due to the impending elections. Nonetheless, the public is pleased that the honorable Finance Minister, Smt. Nirmala Sitharaman, has not failed to deliver on programs and benefits.

The FM declared that Viksit Bharat Budget 2024 would be the theme of this year’s budget. She reaffirmed that the nation is still working toward Atmanirbhar Bharat and that the Interim Budget 2024 placed the greatest emphasis on the welfare and aspirations of the Gareeb (poor), Mahila (women), Yuva (youth), and Annadata (farmers).

Here are the key highlights from Interim Budget 2024.

Interim Budget 2024: Direct Tax Proposals

1. The FM declared that import duties as well as direct and indirect taxes will continue to be levied at the same rates in effect for FY 2024–2025. Under the new tax regime, taxpayers with incomes up to Rs. 7 lakh will not be required to pay any taxes.
2. Regarding corporate taxes, certain newly established manufacturing companies will pay 15% of the tax, while existing domestic companies will pay 22%.

Interim Budget 2024: Goods & Services Tax

1. The FM declared that in FY24, gross GST collections on average would double to ₹1.66 lakh crore per month.
2. There has been an increase in the tax buoyancy of state revenue from 0.72  in 2012-16 to 1.22 in the post-GST period in 2017-23.

Interim Budget 2024: Strategy for Amrit Kaal

Sustainable Development

The Finance Minister pledged to achieve “Net Zero” under Amrit Kaal by 2070, highlighting the importance of sustainable development. Regarding this, the FM suggested,

• Viability gap funding for wind energy
• Setting up of coal gasification and liquefaction capacity
• Phased mandatory blending of CNG, PNG and compressed biogas
• Financial assistance for the procurement of biomass aggregation machinery

Infrastructure and Investment

Under the PM Gati Shakti initiative, the government intends to carry out three significant railway corridor projects in an effort to cut expenses and boost logistics effectiveness.

Agriculture and Food Processing

• The government is set to promote private and public investment in post-harvest activities.
• The application of Nano-DAP is to be expanded in all agro-climatic zones.
• A comprehensive programme for dairy development is to be formulated.
• Further, 5 integrated aquaparks will be set up.

Interim Budget 2024: Allocation for various ministries and schemes

The following allocations have been proposed for major schemes in force under the Interim Budget 2024:

1. Mahatma Gandhi National Rural Employment Guarantee Scheme – Rs.86,000 crore
2. Ayushman Bharat-PMJAY – Rs.7,500 crore
3. Production Linked Incentive Scheme – Rs.6,200 crore
4. Modified Programme for Development of Semiconductors and display manufacturing ecosystem – Rs.6,903 crore
5. Solar Power (Grid) – Rs.8,500 crore
6. National Green Hydrogen Mission – Rs.600 crore

In addition to it following allocations have been proposed for various ministries under the Interim Budget 2024:

Anticipating Budget 2024: Minimal Changes with Strategic Focus

Nirmala Sitharaman, the finance minister, has also played down expectations, saying that the February budget will be a minimal effort to keep things running until the elections. This entails concentrating on necessary spending and adjusting policies as little as possible. Nonetheless, the following is what we anticipate from the Budget 2024:

1. Relaxation in ESOP taxation
2. Increase in limit of home loan interest
3. Allowing home loan interest under the new tax regime
4. Increase the limit of 80D deduction
5. Inclusion of 80D in the new tax regime
6. Bengaluru’s listing as a metro city for HRA Exemption

The 2024 interim budget offers important insights into the nation’s financial situation and future priorities, even though it may not be a game-changer. Understanding the focus and direction of the budget can aid in strategic planning and decision-making for both individuals and businesses. Recall that the interim budget is merely a draft legislation. Following the elections, the full budget for FY 2024–25 will be presented, outlining the goals and objectives of the new administration.